Eastern German Companies Skeptical About Government's Economic Growth Strategy
East German Firms Express Skepticism Toward Economic Policy in Surveys - Eastern Companies Express Doubt Regarding Economic Policy (Based on Survey Results)
Small and medium-sized businesses in Eastern Germany express little faith in the new federal government's ability to spur economic growth, as revealed by a recent survey at the Eastern German Economic Forum in Bad Saarow, Brandenburg. The event, taking place from the 21st to the 23rd of August, brings together company executives, association representatives, and political figures to discuss solutions for the region's economic woes.
When posed the question, "Do you believe the new federal government can take effective steps to provide growth stimulus for the German economy?", an alarming 58.2% responded with either "rather no" or "no, definitely not." On improving their local economic standing, surveyed companies mainly voiced desires for diminished bureaucracy (68%) and slashed energy costs (54.4%).
The survey involved 1,500 private firms in Berlin, Brandenburg, Mecklenburg-Vorpommern, Saxony, Saxony-Anhalt, and Thuringia with ten or more employees, conducted by Civey on behalf of the "Germany - Land of Ideas" location initiative and Deutsche Kreditbank AG between March 3 and April 26, 2025.
Labor Shortages and Energy Prices as Key Challenges
With such low trust from businesses, the federal government faces a formidable task, conceded Philipp Mehne, the managing director of "Germany - Land of Ideas."
For over half of the respondents (52%), the greatest hurdle their own company confronts is staff retention and recruitment. A significant 34.3% of business leaders named exorbitant energy prices as their chief worry. When queried about the most pressing challenges facing Eastern German states, 40.3% pointed to "political polarization as a location risk."
Notable attendees at the Eastern German Economic Forum in Bad Saarow, just south of Berlin, include Federal Minister of Economics Katherina Reiche (CDU) and Federal Minister of Finance Lars Klingbeil (SPD), who are set to appear on Monday and Tuesday, respectively.
- Economic Forum
- Survey
- Federal Government
- Eastern Germany
- Bad Saarow
- Economic Policy
- Skills Shortage
- Berlin
- Labor Market
- Energy Prices
- Political Polarization
Insights:
Companies in Eastern Germany are grappling with bureaucracy and high energy costs, which may be straining economic growth. These businesses may advocate for policy changes, such as administrative process simplification, reduced energy prices, and enhanced infrastructure, to foster economic growth and competitiveness. However, specific survey results provide more detailed insights on the exact concerns and proposals of Eastern German companies.
- The survey at the Eastern German Economic Forum reveals that private companies in Eastern Germany have little faith in the new federal government's ability to stimulate economic growth, with a majority expressing concerns over diminished bureaucracy and slashed energy costs.
- The federal government faces a significant challenge in addressing the key challenges faced by Eastern German businesses, as over half of the surveyed companies identified staff retention and recruitment as their main hurdle, followed closely by exorbitant energy prices.
){kind=link}